LNG input prices, foreign exchange, procurement negotiations and time lags
First written in FY2016. 28 of 32 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
Toho Gas moved to the "Worse" side of this theme in 2016, 6 years before the typical company in this theme (2022).
The whole theme swung hardest in 2026: 5 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「During the fiscal year, profit increased from the previous fiscal year due to the expansion of the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism, among other factors.」
The lag between raw material prices and their reflection in tariffs appeared in the current fiscal year as an expansion of the gain, and ordinary profit increased by ¥546.7 million year on year to ¥37.879 billion. - 2026-04-30MaterialisedEarnings
「Profit increased from the previous fiscal year, mainly because the time-lag gain between raw-material costs and sales under the raw-material cost adjustment system expanded.」
The expansion of the time-lag gain under the raw-material cost adjustment system became a factor behind the full-year increase in profit. - FY2026-H1MaterialisedAnnual report
「During the interim consolidated accounting period, profit increased from the previous interim consolidated accounting period because the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism expanded, among other factors.」
The expansion of the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism appeared as a contributor to profit growth, and ordinary profit increased by ¥389.4 million year on year. - FY2025-H1MaterialisedAnnual report
「During the interim consolidated accounting period, profit declined from the previous interim consolidated accounting period because the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism narrowed, among other factors.」
The narrowing of the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism appeared as a factor behind the decline in profit, and ordinary profit decreased by ¥907 million year on year. - FY2024-Q3MaterialisedAnnual report
「During the first nine months of the fiscal year, profit increased from the same quarter of the previous year despite a decline in gas sales volume, due to the impact of market fluctuations related to raw materials, including the timing mismatch gain under the fuel cost adjustment mechanism.」
Market fluctuations related to raw materials and the timing mismatch gain under the fuel cost adjustment mechanism appeared as contributors to profit growth, and ordinary profit increased 38.3% year on year to ¥33.0202 billion. - FY2024-Q2MaterialisedAnnual report
「During the first six months of the fiscal year, profit increased from the same quarter of the previous year despite a decline in gas sales volume, due to the impact of the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism, among other factors.」
The timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism appeared as a contributor to profit growth, and ordinary profit increased by ¥2.2106 billion from the same quarter of the previous year. - FY2024-Q1MaterialisedAnnual report
「During the first quarter of the fiscal year, profit increased from the same quarter of the previous year despite a decline in gas sales volume, due to the impact of the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism, among other factors.」
The timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism appeared as a contributor to profit growth, and ordinary profit increased by ¥1.1386 billion year on year. - FY2023-Q3Removal of the fuel cost adjustment ceiling and addition of transitional measuresAnnual report
「The price of LNG (liquefied natural gas), the raw material for city gas, is affected by fluctuations in crude oil prices, foreign exchange rates and other factors. Fluctuations in raw material prices are reflected in gas sales prices within a certain range under the fuel cost adjustment mechanism, mitigating their impact on earnings. However, earnings for individual periods may be affected by the time lag before the changes are reflected. In addition, if raw material prices fluctuate due to contract renewals with LNG suppliers or developments in price negotiations, the performance of the Group may be affected. The Group uses commodity swap transactions to mitigate, to a certain extent, the risks from fluctuations in crude oil prices, foreign exchange rates and other factors. On 1 March 2023, the Company amended certain optional supply agreements and, starting with gas charges for meter readings in April 2023, abolished the ceiling on the average raw material price used to calculate the fuel cost adjustment. As a transitional measure, for meter readings from April through August 2023, if the average raw material price exceeded the ceiling, 50% of the excess was deducted and reflected in the calculation of the fuel cost adjustment.」
In addition to the existing risks related to raw material prices, foreign exchange and the time lag before tariff adjustments take effect, specific changes to tariff calculations were added: amendments to optional supply agreements, removal of the ceiling on the average raw material price, and transitional measures for meter readings from April through August 2023. - FY2023-Q2MitigatedAnnual report
「The price of LNG (liquefied natural gas), the raw material for city gas, is affected by fluctuations in crude oil prices, foreign exchange rates and other factors. Fluctuations in raw material prices are reflected in gas sales prices within a certain range under the fuel cost adjustment mechanism, mitigating their impact on earnings. However, earnings for individual periods may be affected by the time lag before the changes are reflected. In addition, if raw material prices fluctuate due to contract renewals with LNG suppliers or developments in price negotiations, the performance of the Group may be affected. The Group uses commodity swap transactions to mitigate, to a certain extent, the risks from fluctuations in crude oil prices, foreign exchange rates and other factors.」
The existing risks related to raw material prices, foreign exchange and the time lag before tariff adjustments take effect were specified again, and the use of commodity swap transactions to mitigate the impact of fluctuations to a certain extent was explicitly stated. - FY2023-Q1MaterialisedAnnual report
「During the first quarter of the fiscal year, profit increased from the same quarter of the previous year despite a decline in gas sales volume and deterioration in the electricity business balance, because the impact of the prior fiscal year's timing mismatch loss was reflected in tariffs under the fuel cost adjustment mechanism, increasing net sales, among other factors.」
The impact of the previous fiscal year's timing mismatch loss was reflected in tariffs under the fuel cost adjustment mechanism, appearing as a contributor to profit growth despite the decline in gas sales volume and deterioration in the electricity business balance. - FY2022-Q3MaterialisedAnnual report
「During the first nine months of the fiscal year, net sales increased 11.1% from the same quarter of the previous year to ¥336.124 billion. Cost of sales increased 25.1% to ¥239.329 billion. As a result, ordinary profit declined 68.6% to ¥5.536 billion, and quarterly net profit attributable to owners of the parent declined 69.9% to ¥3.904 billion. During the first nine months of the fiscal year, profit declined from the same quarter of the previous year despite an increase in sales volume, because the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism turned into a loss due to higher raw material prices, among other factors.」
Higher raw material prices caused the timing mismatch gain between raw material costs and net sales to turn into a loss, and ordinary profit declined 68.6% year on year despite the increase in sales volume. - FY2022-Q2MaterialisedAnnual report
「During the first six months of the fiscal year, profit declined from the same quarter of the previous year despite an increase in sales volume, because the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism turned into a loss due to higher raw material prices, among other factors.」
Higher raw material prices caused the timing mismatch between raw material costs and net sales to turn from a gain into a loss, and ordinary profit declined 74.0% year on year despite the increase in sales volume. - FY2022-Q1MaterialisedAnnual report
「During the first quarter of the fiscal year, profit declined from the same quarter of the previous year despite an increase in sales volume, because the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism turned into a loss, among other factors.」
The timing mismatch between raw material costs and net sales under the fuel cost adjustment mechanism turned from a gain into a loss, and ordinary profit declined 23.2% from the same quarter of the previous year despite the increase in sales volume. - FY2021MaterialisedAnnual report
「Profit declined due to lower gas sales volume, the narrowing of the timing mismatch gain between raw material costs and net sales under the fuel cost adjustment mechanism, and soaring wholesale electricity market prices, among other factors. Impact of the sliding time lag: -¥5.0 billion (previous fiscal year: +¥8.0 billion → current fiscal year: +¥3.0 billion)」
The impact of the timing mismatch between raw material costs and net sales narrowed from a positive ¥8.0 billion in the previous fiscal year to a positive ¥3.0 billion in the current fiscal year, appearing as a factor behind the decline in ordinary profit. - FY2021-Q2RestatedAnnual report
「There were no material changes in the risks relating to the Group's business and other matters during the six months ended the second quarter.」
No material changes were identified in the risks related to LNG raw material prices, foreign exchange, procurement negotiations and the time lag before tariff adjustments take effect. - FY2021-Q1MaterialisedAnnual report
「During the first quarter of the fiscal year, profit declined substantially because gas sales volume for commercial and other customers decreased due to the spread of COVID-19, in addition to the decline from the prior year's gain under the fuel cost adjustment mechanism.」
The reversal of the prior-year gain under the fuel cost adjustment mechanism appeared in the results as a major factor behind the substantial decline in profit, together with the decrease in sales volume caused by the infectious disease. - FY2020MaterialisedAnnual report
「Impact of the sliding time lag: +¥17.0 billion (previous fiscal year: -¥9.0 billion → current fiscal year: +¥8.0 billion)」
The timing mismatch between raw material costs and net sales turned from a loss into a gain, with an impact of ¥17.0 billion identified as a major contributor to ordinary profit growth. - FY2020-Q3MaterialisedAnnual report
「During the first nine months of the fiscal year, profit increased substantially from the same quarter of the previous year because the timing mismatch loss between raw material costs and net sales under the fuel cost adjustment mechanism turned into a gain, among other factors.」
The loss from the timing mismatch between raw material prices and their reflection in tariffs turned into a gain, and ordinary profit increased 241.0% from the same quarter of the previous year. The impact of the time lag continued to appear in the results. - FY2020-Q2MaterialisedAnnual report
「During the first six months of the fiscal year, profit increased substantially from the same quarter of the previous year because sales volume increased due to temperature effects and other factors, and the timing mismatch loss between raw material costs and net sales under the fuel cost adjustment mechanism turned into a gain, among other factors.」
The timing mismatch between raw material costs and net sales under the fuel cost adjustment mechanism turned from a loss into a gain, and ordinary profit increased 212.4% from the same quarter of the previous year. The earnings impact of the lag between raw material prices and their reflection in tariffs appeared in the results. - FY2020-Q1MaterialisedAnnual report
「During the first quarter of the fiscal year, profit increased substantially from the same quarter of the previous year because sales volume increased due to temperature effects and other factors, and the increase in raw material costs from the previous fiscal year was increasingly reflected in sales under the fuel cost adjustment mechanism, among other factors.」
The increasing reflection of raw material costs in sales under the fuel cost adjustment mechanism appeared as a major contributor to profit growth for the quarter, through the impact of the lag between raw material prices and their reflection in tariffs. - FY2019MaterialisedAnnual report
「During the fiscal year, profit declined because sales volume fell due to temperature effects and other factors, raw material costs rose in response to higher crude oil prices, and the loss from the timing mismatch before the increase was reflected in unit sales prices expanded from the previous fiscal year. Impact of the sliding time lag: ¥3.0 billion decrease (previous fiscal year: ¥6.0 billion decrease → current fiscal year: ¥9.0 billion decrease)」
Higher raw material costs resulting from the rise in crude oil prices and the expansion of the loss from the timing mismatch before tariff adjustments took effect materialized. The impact of the sliding time lag increased from a ¥6.0 billion loss in the previous fiscal year to a ¥9.0 billion loss in the current fiscal year. - FY2019-Q3MaterialisedAnnual report
「During the first nine months of the fiscal year, profit declined substantially because sales volume fell due to temperature effects, raw material costs rose in response to higher crude oil prices, and the loss from the timing mismatch before the increase was reflected in unit sales prices expanded significantly from the same quarter of the previous year.」
Higher crude oil prices, increased raw material costs and the expansion of the loss from the timing mismatch before tariff adjustments took effect actually materialized, and ordinary profit declined 61.8% year on year. - FY2019-Q2MaterialisedAnnual report
「During the first six months of the fiscal year, profit declined substantially because the loss from the timing mismatch between raw material costs and net sales expanded significantly from the same period of the previous year as crude oil prices rose.」
The loss caused by higher crude oil prices and the lag before tariff adjustments took effect actually materialized, and ordinary profit declined 41.7% year on year. - FY2019-Q1MaterialisedAnnual report
「Cost of sales increased 8.7% year on year to ¥63.79 billion, mainly because raw material costs rose in response to higher crude oil prices. As a result, ordinary profit declined 14.9% year on year to ¥8.426 billion.」
Higher raw material costs resulting from the rise in crude oil prices appeared in the results as an increase in cost of sales and a 14.9% year-on-year decline in ordinary profit. - FY2018-Q3MaterialisedAnnual report
「Despite an increase in gas sales volume, the timing mismatch gain between raw material costs and net sales resulting from the decline in raw material prices in the previous year turned into a loss due to higher raw material prices, among other factors, and profit declined year on year during the first nine months of the fiscal year.」
The timing mismatch gain turned into a loss due to higher raw material prices and the lag before they were reflected in tariffs. Ordinary profit declined 9.5% year on year, while quarterly net profit attributable to owners of the parent declined 9.3%. - FY2018-Q2MaterialisedAnnual report
「The timing mismatch gain between raw material costs and net sales resulting from the decline in raw material prices in the previous year turned into a loss due to higher raw material prices, among other factors, and profit declined year on year during the first six months of the fiscal year.」
The timing mismatch gain turned into a loss due to higher raw material prices and the lag before they were reflected in tariffs. Ordinary profit declined 43.7% year on year, while quarterly net profit attributable to owners of the parent declined 44.8%. - FY2018-Q1MaterialisedAnnual report
「The timing mismatch gain between raw material costs and net sales resulting from the decline in raw material prices in the previous year turned into a loss, among other factors, and profit declined year on year during the first quarter of the fiscal year.」
The timing mismatch between changes in raw material prices and their reflection in tariffs turned from a gain into a loss, resulting in a 46.2% year-on-year decline in both ordinary profit and quarterly net profit attributable to owners of the parent. - FY2017MaterialisedAnnual report
「Because there is a time lag of several months before fluctuations in raw material prices are reflected in unit selling prices, the previous fiscal year saw a substantial gain as raw material prices declined following a sharp drop in crude oil prices. In the current fiscal year, the reversal of that effect resulted in a substantial decline in profit from the previous fiscal year.」
The reversal of the prior-period gain from the lag in reflecting raw material costs in tariffs appeared in the results, including a 59.9% decline in ordinary profit for the current period. - FY2017-Q3MaterialisedAnnual report
「The nine months ended the third quarter saw a substantial decline in profit because gains under the raw material cost adjustment mechanism decreased significantly from the same period of the previous year.」
The decrease in gains under the raw material cost adjustment mechanism appeared in the results as a factor behind the 60.3% decrease in ordinary profit and the 60.4% decrease in quarterly net income attributable to owners of the parent for the nine months ended the third quarter. - FY2017-Q2MaterialisedAnnual report
「The six months ended the second quarter saw a substantial decline in profit because gains under the raw material cost adjustment mechanism decreased significantly from the same period of the previous year.」
The decrease in gains under the raw material cost adjustment mechanism continued to appear in the results as a factor reducing profit for the six months ended the second quarter. - FY2017-Q1MaterialisedAnnual report
「The six months ended the first quarter saw a substantial decline in profit because gains under the raw material cost adjustment mechanism decreased significantly from the same period of the previous year.」
The decrease in gains under the raw material cost adjustment mechanism actually emerged as a factor reducing profit. The impact of raw material prices and tariff pass-through was reflected in quarterly earnings, but no further explanation was provided regarding the time lag itself. - FY2016First statedAnnual report
「Fluctuations in raw material prices are reflected in gas selling prices through the raw material cost adjustment mechanism, but the time lag before reflection may affect earnings for the period. Earnings may also be affected by developments in price negotiations with LNG suppliers.」
The company explained that a temporary gain of nearly ¥40 billion arose due to the approximately four-month time lag between the decline in crude oil prices and its reflection in gas tariffs.